Hot wallets allow you quick access to your coins and can either be stored online or on your computer. They should not be used to store large amounts of cryptocurrency and are best for day trading, or making small purchases online.
What types of hot wallets exist?
– Mobile wallets work as an app on your tablet or mobile device
– Desktop wallets are installed directly on your computer and can only be accessed through the device they live on
– Online wallets are stored online with a 3rd party
Pros of hot wallets:
– Easily accessible
– Usually free or inexpensive
Why avoid a hot wallet?
– An easier target for scammers to try and hack
– Often uninsured
There are lots of scams out there that target new and experienced users. They use fake websites, and wallets to steal your private keys and coins directly. You should verify wallets and URLs and always research a wallet before opening up an account.
If you do use a hot wallet, we recommend using either Jaxx or Exodus.